Wednesday 16 May 2012 15.59 EDT
First published on Wednesday 16 May 2012 15.59 EDT

8 January 2011

Kenny Dalglish returns to Liverpool as caretaker manager following the sacking of Roy Hodgson, who won just seven out of 20 league games in a six-month spell at Anfield. Dalglish's first match in charge is a 1-0 loss to Manchester United in the third round of the FA Cup

On a whirlwind final day of the transfer window, Liverpool sign Luis Suárez from Ajax for £22.7m and Andy Carroll from Newcastle for £35m while agreeing to sell Fernando Torres to Chelsea for £50m after the Spaniard had handed in a transfer request

Dalglish is appointed by Fenway Sports Group as the club's long-term manager on a three-year contract having taken them from 12th – and only four points above the relegation zone – to fifth. Steve Clarke, Dalglish's assistant, also signs a long-term deal

Liverpool end the season in sixth having won 10 of their 18 Premier League games under Dalglish, which included victories over Chelsea and Manchester United. They also reached the last 16 of the Europa League, where they lost to eventual runners-up Braga

Liverpool begin the new season with a disappointing 1-1 home draw with Sunderland and having spent almost £50m on four new signings; Stewart Downing (£20m), Jordan Henderson (£16m), Charlie Adam (£7.5m) and José Enrique (£6m)

Following the Football Association's decision to ban Suárez for eight games after he is found guilty of racially abusing Patrice Evra, Liverpool's players, and Dalglish himself, wear T-shirts in support of the Uruguay striker during the goalless draw with Wigan at the DW Stadium

Immediately after Liverpool's 3-1 defeat against Bolton, a result that leaves the side in seventh, Dalglish publicly criticises his players, accusing them of not showing the correct "approach" and of not working hard enough to secure victory at the Reebok Stadium

Dalglish issues an apology for arguing with Sky Sports' Geoff Shreeves in the immediate aftermath of Liverpool's 2-1 defeat against Manchester United, a game best remembered for Suárez's decision not to shake hands with Evra prior to kick-off

Liverpool beat Cardiff 3-2 on penalties to win the Carling Cup at Wembley, the club's first trophy in six years and the first Dalglish had won while in charge of the Merseysiders since the 1990 First Division championship

Having lost three league matches in succession, Liverpool record a much-needed victory in the second Merseyside derby of the season, comfortably beating Everton 3-0 at Anfield thanks to a hat-trick from the captain and man-of-the-match Steven Gerrard

But as had been the case for the majority of the season, Liverpool fail to build on victory and lose 3-2 to Queens Park Rangers in their next fixture, having comfortably led 2-0 at Loftus Road before sloppily conceding three goals in the space of 17 second-half minutes

A 2-0 defeat against Newcastle at St James' Park, during which José Reina is sent off, is Liverpool's third defeat in succession and sees them drop to eighth, one place behind rivals Everton. They remain there following a 1-1 home draw with Aston Villa six days later

Liverpool's second visit to Wembley is another joyous experience for them as they come from behind to beat Everton 2-1 in their FA Cup semi-final tie. Suárez and Carroll score in the second half following Nikica Jelavic's early opener for David Moyes's side. Dalglish's team soon discover they will face Chelsea in the final

A poor display sees Liverpool lose 2-1 to Chelsea in the FA Cup final. Ramires and Didier Drogba score either side of half-time for the London club before Carroll, on as a substitute, pulls one back for Dalglish's side. The striker comes close to equalising with a header that Petr Cech does well to push on to the bar

A 1-0 loss at Swansea sees Liverpool finish the season in eighth, their lowest league placing in the Premier League era. The club won just six matches at Anfield all season and with Damien Comolli having already been sacked as director of football the previous month, suspicions grow that Dalglish is next for the chop